MUMBAI: Top companies are facing a risk of violations from third parties around bribery and corruption according to a study by Kroll, a risk mitigation and response solutions firm and Ethisphere Institute, a global leader in defining and advancing the standards of ethical business practices.
Respondents believe the top risks to their anti-bribery and corruption programs will come from third party violations (40 percent), a complex global regulatory environment (14 %), and employees making improper payments (12 %), the research– 2017 Anti-Bribery and Corruption Benchmarking Report said.
“Against a backdrop of heightened regulatory and reputational concerns, more than one-third (35 percent) of all risk and compliance professionals surveyed expect their organization’s bribery and corruption risks to increase in 2017, and more than half (57 percent) expect them to persist at the same levels as last year,” the research added.
According to the research the reputational risk associated with bribery and corruption allegations is also on the minds of most respondents. Indeed, general reputational concerns went from being the least likely reason identified in last year’s ABC Report for a third party to fail a company’s vetting standards to being the most likely reason — a stunning change in just one year.
“It is clear the anti-bribery and corruption program can be viewed in the context of regulation, as well as more broadly as a means of protecting an organization’s most valuable asset — its reputation,” said Steven Bock, Managing Director and Head of Operations and Research with Kroll’s Compliance practice.